Rule 73 - Establishes financial and reporting requirements that are deemed necessary for the regulation of captive insurance companies. This Rule applies to captive insurance companies as that term is defined by Ark. Code Ann. § 23-63-1601(8). The provisions of the Arkansas Insurance Code do not apply to captive insurance companies except as specifically provided in Title 23, Chapter 63, Subchapter 16, of the Arkansas Code Annotated.
Rule 73 s 8, Organizational examination - In addition to the processing of the application, an organizational investigation or examination may be performed before an applicant is licensed. Such investigation or examination shall consist of a general survey of the company's corporate records, including charter, bylaws and minute books; verification of capital and surplus; verification of principal place of business; determination of assets and liabilities; and a review of such other factors as the Commissioner deems necessary. Per A.C.A. 23-63-1608(a)(1), an examination shall be performed “At least one (1) time every five (5) years, or whenever the Insurance Commissioner determines it to be prudent”.
A.C.A. 23-63-1602(a), when permitted by its articles of incorporation or charter, a captive insurance company may apply to the Insurance Commissioner for a license to do all insurance, including workers' compensation insurance, authorized by the Arkansas Insurance Code.
A.C.A. 23-63-1602(a)(4) states: A captive insurance company may not provide personal motor vehicle or homeowner's insurance coverage or any component of these coverages.
A captive insurance company shall not accept or cede reinsurance except as authorized by § A.C.A. 23-63-1611
A captive insurance company shall hold at least one (1) board of directors meeting, or in the case of a reciprocal insurer, a subscriber's advisory committee meeting, each year in this state.
A captive insurance company shall maintain its registered office in this state, or in the case of a branch captive insurance company, maintain the registered office for its branch operations in this state; and appoint a resident registered agent to accept service of process and to act on its behalf in this state.
Captive insurance companies are not permitted to join or contribute to the state guaranty or insolvency fund, nor is it permitted to receive any benefits from it.